Life Insurance Cover
Life insurance is a policy that ensures monetary advantage to your family after you die. The family can use this finance for whatever they may require, such as mortgages, debts, household expenses, schooling costs, burial expenditures, or to oversee any commitment you may have left unfinished.
Life insurance is a long-term cover that can make challenging situations less aggravating. You can choose numerous policies, but your premium payments usually decide which plan you can move ahead with. Through this insurance, you can make monthly premium payments until you pass away or all at once as a one-time lump sum. Another effective way to obtain a life insurance policy.is to invest your money which can earn you and your family a more excellent retrieval in the future.
Life insurance can be seen to be a little more expensive than other insurance plans; this is because it guarantees a fixed monetary income. The premium payments of this cover may also differ from person-to-person depending on your age, job and health. Even a tiny habit such as smoking may also play a crucial role. At Care Financial Services, we understand the worry you have for your family if something were to happen to you, especially if you are the only one providing for your family.
Life insurance can be the perfect option for you if you are worried about the financial position of your loved ones once you pass away. Our team of experts meets each client personally to understand their condition better and empower them with the most appropriate advice and guidance possible. So what are you waiting for? Contact us today and let us share your burden and find the ideal solution.
More About Life Insurance:
Now that we know what a life insurance plan is, let’s look at the different policies of this cover. These policies have a fixed duration known as the ‘term’, which can be five, ten or twenty-five years.
Types of Life Policies
These term life policies only pay if you pass away during your policy. Below we have three types of term life policies:
- Level– This term policy pays the amount agreed upon when you die. The amount you receive will stay the same, and this is one of the most affordable and transparent options.
- Decreasing– in this type of policy, the compensation coverage decreases each year; this means the money you receive each year for your insurance will reduce until the amount reaches zero. This policy is paired with repayment mortgages in which the overall loan reduces over its term.
- Increasing– the level of compensation rises over your term- this is done to keep up with rising inflation rates.
No matter which policy or term you choose, they all will pay you when you pass away as long as your monthly premium payments are made on time. However, the longer your policy is, the more expensive it may be.
Furthermore, you could end up paying more and obtaining less if you live more than you might have anticipated.
Another aspect of the life insurance cover is joint and single policies. A joint policy is a cover purchased with a partner such as your spouse or any other family member. If you die, the withstanding partner will acquire the compensation unless you have made other arrangements.
On the other hand, a single policy is a cover that takes you to take out independently. If you were to die, your insurance money would be invested in your subsisting property, and you must also determine who to give that property to through your will before you die. A joint insurance policy is more inexpensive than buying two single policies.
However, a joint cover only pays once, while buying two single insurance covers would mean you obtain money after each person passes away.
Things to Consider
We have outlined the policy background; contact us at Care Financial Services for further details. Nevertheless, below, we have listed five things which you should speculate before you apply for the insurance:
- Honestly:
most people that apply for this policy are victorious. However, it would help if you answered your insurer with complete integrity when they asked you any questions. When a claim is made, the insurer’s primary focus is your medical history. If you don’t answer with complete honesty or hide any data from them, you may face claim dismissal. - Please focus on the small prints
when applying for any insurance policy, you must know what is and isn’t included in your agreement. If your policy agreement has something you don’t comprehend or are not aware of, then ask your insurer and contact your financial advisor.
- Are you not sure about getting yourself insured?
You are given 30 days to make up your mind, and if you have already applied, you can also get a complete refund.
- Can you switch to another policy?
You may find a more reasonable deal if you are young and healthy. However, when you are old and have health issues, it may be less costly to go with the insurance you purchased when you were youthful. Make sure you find another policy before you refund your old one because you can not change your mind once you have terminated an insurance cover.- Are you worried about missed payments?
Insurance policies are very adaptable, and on extra payments, they allow you to add different elements to your cover, for example, a ‘waiver of premium; this is a feature which allows your premium payments to be paid automatically in the case of a casualty or healthcare issue in which you no longer can go to work; this saves your policy from being suspended due to missed premium payments.
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How Can Care Financial Services Help?
If you are considering life insurance, there are many factors you may need to consider- how many family members do you have that depend on you? Will mortgage dues still be there after you die? How much inheritance do you have to leave behind?
At Care Financial Services, we consider the level of tension you may have thinking about your family and their survival after you die. That is why our team of consultants works day and night to help clients in every way possible. Our specialist financial advisors will discuss everything to decide whether a life insurance policy suits you and your family. We understand that all types of insurance can be pretty tricky to understand. That is why we will discuss all the possibilities with you without the extra financial tension for you to make the correct verdicts that suit your circumstances. So give us a call today, and let us make the future much brighter for you and your family.
Frequently Ask Questions
If you have a question that deals with clients, customers or the public in general, there is bound to be a need for the FAQ page.
You can buy a life insurance policy with your mortgage plan through your monetary or mortgage advisor. If you have no dependents or anyone to provide for, you should opt for income protection or critical illness insurance instead of a life insurance cover. If you have life insurance already, then you should evaluate it regularly, particularly after affairs such as:
- Marriage
- Birth of children
- A new job
- Shifting to a new home
- Separation or divorce
You may find that your employer proposes life insurance as a job incentive. In this case, the insurance will pay out as a standard life insurance cover if you die. Additionally, your employer may multiply your annual salary by a certain percentage, for instance, four times your yearly earnings.
Usually, there is no tax on a life insurance payout, meaning you will not be charged duties such as capital gain or income tax. However, you may face an inheritance tax on your agreement, which can be prevented by legally putting your life insurance money in a trust fund.
As the name indicates, guaranteed life insurance is a policy that will remain the same throughout your insurance duration. While in a reviewable life insurance policy, the premium amount may be modified every five to ten years and are more likely to increase in cost.
Yes, you can avail multiple life insurance policies; this would mean that your dependants could claim payouts from all your insurance policies if you pass away.
No, it is not necessary to have life insurance when applying for a mortgage. The only insurance you may require when getting a mortgage is building insurance.
Disclaimer:
The content on this page is based on our understanding and knowledge at the time of publication. It may be subject to change and may not be applicable to your circumstances, so should not be relied upon. Please contact us if you require further information about the content included on this page.
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0113 518 1624
lnfo@carefinancials.co.uk